MPS Board Member and Senior Treasury Official Resigns Amid Insider Trading Probe

Summary

Stefano Di Stefano, a board member of Monte dei Paschi di Siena (MPS) and a senior Italian Treasury official, has resigned following the launch of a criminal investigation into alleged insider trading. Milan prosecutors are examining whether Di Stefano purchased shares in MPS shortly before the public announcement of a major strategic transaction involving the bank.

ROME / MILAN, Feb 11 — Stefano Di Stefano has stepped down from his roles at both Monte dei Paschi di Siena (MPS) and the Italian Ministry of Economy and Finance after becoming the subject of a criminal probe into suspected insider trading.

MPS confirmed that Di Stefano resigned “with immediate effect” following notification of the investigation. The Italian Treasury, where he served in a senior position overseeing state shareholdings, also acknowledged his departure.

The Investigation

According to judicial sources, Milan prosecutors have opened an inquiry into whether Di Stefano used confidential information to purchase MPS shares ahead of a market-sensitive corporate announcement.

Authorities reportedly seized his mobile phone as part of the investigation. The alleged share purchases are believed to total roughly €100,000 to €120,000. Prosecutors are examining whether the trades were executed using non-public information connected to developments involving the bank.

Di Stefano has not publicly commented on the allegations, and no formal charges have been announced. Under Italian law, being placed under investigation does not imply guilt.

Dual Role Raises Governance Questions

The case has drawn particular attention because of Di Stefano’s overlapping responsibilities:

• Italian Treasury Role: He headed a department responsible for overseeing state holdings in strategic listed companies.
• MPS Board Seat: He served as a board member of the Tuscan lender, one of Italy’s oldest banks.

The Italian state remains a shareholder in MPS following multiple recapitalizations in recent years, although its stake has been reduced as part of privatization efforts.

Corporate governance experts note that the dual institutional exposure makes the investigation especially sensitive, even if the alleged trading amounts are relatively modest compared with broader market transactions.

Impact on MPS

The bank said the resignation was effective immediately and did not comment further on the investigation. There is currently no indication that the probe affects the legality or validity of MPS’s corporate transactions.

Italian prosecutors are continuing their analysis of financial records and electronic communications as part of the inquiry.

Why This Matters

• Governance Scrutiny: The case highlights the compliance risks when senior public officials simultaneously hold roles in listed companies.
• Market Integrity: Insider trading investigations, even involving relatively small sums, can raise broader questions about transparency in sensitive financial transactions.
• State Shareholder Sensitivity: With the Italian Treasury still holding a stake in MPS, reputational risk extends beyond the bank to public institutions.
• Banking Sector Stability: Although the probe appears focused on an individual, regulatory scrutiny in Italy’s banking sector remains high following years of restructuring and state intervention.

FAQs

Q1. What is Stefano Di Stefano accused of?

He is under investigation for allegedly purchasing MPS shares using confidential information before a market-sensitive announcement. No charges have been formally filed.

Q2. Has he been convicted?

No. He is under investigation. Under Italian law, individuals are presumed innocent unless proven guilty.

Q3. Did MPS remove him?

The bank stated that he resigned with immediate effect following the opening of the investigation.

Q4. Does this affect the bank’s recent transactions?

There is currently no indication that the investigation affects the legality of MPS’s corporate activities.

Q5. What happens next?

Prosecutors will continue reviewing digital evidence and trading records to determine whether sufficient grounds exist for formal charges.